CEMENT INDUSTRY

SOJITRA JIGNESH
KOTADIYA VISHAL
KAKADIYA PINAL
SHINGALA NAGJI
CHAVDA MITAL
AMBALAM SARANYA
AMBUJA
CEMENT
 Cement in India
A Cyclical Business of Supply
Not Demand
 Cement Industry - A Paradigm
Shift
• No new cement plants in next two years
• Demand supply gap likely to be over in
the next couple of months
• Consolidation is well on its way to bring
stability in pricing
• Future Demand to be much higher on
account of building of Roads, Ports &
other infrastructure
• Housing becoming a major activity in the
economy
• Due to ……
• Low Interest Rates
• Availability of mortgage finance due to
ample liquidity
• Increasing disposable Income

During Calendar year 2011 Cement demand

supply will balance – A situation not seen in
past several years
GEOLOGY (RAW MATERIALS)
The fundamental chemical compounds to produce cement clinker are:
•Lime (CaO)
•Silica (SiO2)
•Alumina (Al2O3)
•Iron Oxide (Fe2O3)
Raw materials used in the production of clinker cement

Fly ash: by-product of burning finely grounded coal either for industrial
application or in the production of electricity
 THE CEMENT MANUFACTURING PROCESS

quarry
dumper
loader

Quarry face

1. BLASTING 2. TRANSPORT

storage at
crushing
the plant
conveyor

3. CRUSHING &
TRANSPORTATION
1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay) are
blasted from the quarry.
2. TRANSPORT : The raw materials are loaded into a dumper.
3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing, are
transported to the plant by conveyor. The plant stores the materials before they are
homogenized.
 THE CEMENT MANUFACTURING PROCESS
Raw grinding and burning

storage at Raw mill

the plant
conveyor Raw mix

preheating
1. RAW GRINDING

kiln

cooling

clinker

2. BURNING
1. RAW GRINDING : The raw materials are very finely ground in order to produce the raw mix.
2. BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that can
be as hot as 2000 °C. The raw mix burns at 1500 °C producing clinker which, when it leaves the kiln, is
rapidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed to
make cement.
 THE CEMENT MANUFACTURING PROCESS
Grinding, storage, packing, dispatch
Gypsum and the secondary additives are added
to the clinker.
clinker
storage Finish grinding

1. GRINDING
silos

dispatch
bags

2. STORAGE, PACKING, DISPATCH

1.GRINDING : The clinker and the gypsum are very finely ground giving a “pure cement”. Other secondary
additives and cementitious materials can also be added to make a blended cement.

2. STORAGE, PACKING, DISPATCH :The cement is stored in silos before being dispatched either in
bulk or in bags to its final destination.
 Our Business Model

• Own Infrastructure -Logistics

Management
• Strong brand & efficient distribution
• Presence in prime markets
• Lowest cost cement producer
 Own Infrastructure
• 7 Owned Cement Ships for transporting
Cement by Sea
• Large port in Gujarat to handle export of
Cement ( 2 mn tonnes this year) &
Import of Coal / Oil
• 3 Cement receiving terminals
• 190 MW of Captive Power Plants at
various Cement Plants to give reliable and
cheap power
 Strong Brand
• India - A bagged market
• Individual home builder - key driver of
demand
• Our focus
• Best quality cement
• Good packaging
• Logistic management - strong distribution
network
• Customer service
 USES
Uses

Main use is in the fabrication of concrete and mortars

Modern uses
Building (floors, beams, columns, roofing, piles, bricks,
mortar, panels, plaster)
Transport (roads, pathways, crossings, bridges,
viaducts, tunnels, parking, etc.)
Water (pipes, drains, canals, dams, tanks, pools, etc.)
Civil (piers, docks, retaining walls, silos, warehousing,
poles, pylons, fencing)
Agriculture (buildings, processing, housing, irrigation)
 Ambuja Cement
1986 - 0.7 Mn. Tonnes
HP
Today - 14 Mn. Tonnes
Punjab
A growth of 18 times since
inception

Rajasthan

Gujarat
Maharashtra Cement factories
Sea terminals

Mn. tonnes

Gujarat 5.0
North India 6.0
Maharashtra 3.0
Total Capacity 14.0
 FACILITY LOCATION
• Availability of transportations facility.
• Availability of market.
• Availability of services
 But
Cement Industry
Not without challenges
 Challenges

• Cement is energy intensive industry

• Coal, Power & Oil constitute major costs
• Increasing cost of fuel
• Better realisation only in few markets
Growth in Profits for only those
who can meet these Challenges
 Our Strategy
• Presence in the growing markets of North
& West
• Retail Focus – Premium pricing
• Largest Exporter of cement – 15% of
Production
• 35% Cement transport by sea - Cheapest
Mode
• And ... Lowest Cost Cement Producer